Venture Debt is made available for earlier stage companies before they would be able to access a more traditional bank loan.
For that reason they’re carrying a higher level of risk and associated interest rates. Crowd2Fund conducts enhanced due diligence on Venture Debt loans as a deeper understanding of the business is needed in order to approve them. Venture Debt is for sophisticated investors only and investors should only invest what they can afford to lose.
Benefits of choosing Venture Debt
Venture Debt is available for earlier stage businesses which have an established business model, great growth prospects and are revenue generating.
If you can only access equity finance but can demonstrate high growth potential and a clear business plan for repayments you may have to consider Venture Debt.
Enhanced due diligence
A more in depth understanding of the business is needed to assess these types of opportunities. This is because we don’t just base the loan on the historic performance but also the future potential. The finance team will look deeply into the company plans and operating model to understand the affordability and suitability of Venture Debt with the view to minimise defaults.
All of our Venture debt are carefully designed and tailored to each business.
We take a fee of 10% in order to provide you with an enhanced due diligence and a bespoke marketing campaign.
How it works
Step 1Register on the platform
Step 2We’ll review your application & get you listed on the platform quickly
Step 3You’re approved & people start lending to you instantly
Venture Debt for investors?
Venture debt is 'project finance', despite the higher risk involved, investors are allowed to participate in a new asset class, thus potentially generating higher returns. Venture Debt should only be participated in by sophisticated investors who can make their own assessment of the business.
Build a diversified portfolio
Venture Debt is a high risk investment vehicle and should only be part of a diversified portfolio. Investors with less tolerance or risk should not take part in these opportunities.